Chinese Academy of Sciences' Center for Forecasting Science predicted the average housing price per square meter could rise 12.77 percent year-on-year to 5,711.5 yuan ($867.6) in 2011, Ccstock.cn reported Monday.

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The center's forecast report said property market would not see a price surge as drastic as last year's as the demand growth for homes is expected to slow. The government will provide more apartments for low-income residents, but the non-residential demands on offices and businesses may drive the market.

Dong Jichang, a professor at the center, said the price surge in first-tier cities – Beijing, Shanghai and Guangzhou – should ease up as "this year will witness the effects and effectiveness of the government's policies."

The center also forecasted a 3.7 percent year-on-year increase in the consumer price index. The center's Deputy Director Yang Xiaoguang said several factors contributed to inflation, including the price rise in agricultural products and resources, the rise in labor costs, the high capital liquidity, and the carryover effects at the year-end.

This is the six annual economy forecast and prospects the center has released.